Asia Pacific airlines operated at near break-even during 2014

Asia Pacific airlines has recently revealed it operated at a close break-even during 2014. Statistics released by the Association of Asia Pacific Airlines (AAPA) show that aspects such as competition from others, excess capacity and high fuel costs acted as “drag” on the results outcome.

The AAPA has said: “Although air cargo markets were also not spared from persistent yield pressure, the upswing in demand helped lift cargo revenue to a combined total of $20.8 billion for the year, a 2.7% increase compared to 2013.”

Last year, international air cargo traffic welcomed a 5.3% increase following a number of years of weak cargo market demand. Director General for AAPA, Andrew Herdman, said of the financial results: “Asia Pacific carriers faced a number of significant challenges in 2014, with capacity growth slightly outpacing market demand leading to intensely competitive market conditions across all segments of the industry.”

Looking to the future, Herdman added: “The operating environment remains highly competitive, even though airlines have been carefully reviewing their route networks and closely matching capacity with the expected growth in demand.”